Mediator named; pension woes hit Canada Post
With the clock ticking toward potential job action at Canada Post, lawyer and author William Kaplan was appointed Friday to seek an end to the months-long labour dispute at the Crown agency.
Labour Minister MaryAnn Mihychuk said her hope was the Toronto-based seasoned mediator and arbitrator could avert threatened job action by members of the Canadian Union of Postal Workers.
“I am hopeful that this will bring a new perspective to the negotiating table, which could motivate the parties to find a solution and move beyond their current impasse,” Mihychuk said.
The union issued a 72-hour strike notice Thursday, accusing Canada Post of forcing a labour disruption.
Nine months of contract talks between the Crown corporation and CUPW reached a stalemate this week with both sides saying they remained far apart on key issues including pay scales for rural letter carriers and proposed changes to pensions for future employees.
Adding fuel to its argument that its ability to meet the union’s contract demands is severely restricted, Canada Post revealed Friday it earned a profit of about $1 million in the second quarter of operations this year, a result it termed “essentially break-even.”
However, the fiscal black ink was far overshadowed by a daunting pension obligation, Canada Post warned.
“Canada Post’s pension solvency deficit … is estimated at $8.1 billion as of July 1, 2016, up from $6.1 billion at December 31, 2015,” it said.
“The large size and volatility of this obligation compared to the corporation’s revenue and profit presents a major challenge to the corporation’s … self-sustainability.”
Canada Post wants move from a defined benefit pension plan to a defined contribution plan for new employees, a move CUPW said would create a two-tiered pension system.
The union has been arguing for wage parity between rural and urban postal workers, claiming that rural carriers earn, on average, roughly 30 per cent less than city carriers.